MGM Cotai open for business

MGM Cotai opened its doors yesterday, with casino floor traffic above expectations following the grand opening ceremony.

The opening night ceremony was an all business affair. Officiating guests included Macau chief executive Mr. Chui Sai on, along with key Macau government officials and executives from MGM Resorts.

The low key event, was followed by a strong flow of visitors keen to see what the Lion would bring just a head of CNY. The non-gaming offerings were also a draw, with food & beverage outlets at two-thirds capacity most of the night. Janice Wong’s pastry shop was a success among visitors.

Punters were also drawn to the premium gaming areas and gaming tables.

MGM Cotai is the latest addition to the MGM portfolio in China. Designed as the “jewelry box” of Cotai, it plans to offer approximately 1,400 hotel rooms and suites, meeting space, high end spa, retail offerings and food and beverage outlets and a casino.

On Wednesday, analyst Chelsea Tam said the opening marks the reverse of the recent market share loss trend for MGM Cotai, and an increase in competitiveness of Cotai East versus the Macau Peninsula. 

"MGM Cotai will expand narrow-moat MGM China’s gaming tables by 29 percent and hotel room count by 238 percent at its full capacity, giving the group more complementary room inventory to attract high-end customers," said Tam.

MGM Cotai was launched at 70 percent capacity and no junkets. Table allocation was below expectations. The stand alone VIP Villas area will come online at a later date which will allow the property a second wind down the line.

In terms of ramp up, Tam said that MGM Cotai's ramp up speed should be "decent" as the adjacent opening of Wynn Palace in 2016 ramped up strongly. 

 

It's promixity to the established City of Dreams will benefit the property as it has a similar premium mass focus.

"Given Wynn Palace and MGM Cotai are new properties and City of Dreams is undergoing renovation, we expect City of Dreams to lose some traffic and revenue opportunities to these two new properties in the near term. Given the recovery of the gaming market and the decent accessibility, we expect MGM to see faster ramp up compared with the initial launch of Wynn Palace," said Tam.

More news from this jurisdiction

MacauThursday, Feb 22, 2018

Macau emerged as a major winner in the latest edition of the Forbes Travel Guide, with the highest number of five-star hotels, restaurants and spas.

MacauTuesday, Feb 20, 2018

Gross gambling revenue over the Chinese New Year period was disappointing, despite higher visitation to Macau, according to Bernstein analysis.

MacauThursday, Feb 15, 2018

Macau Legend Development says it expects to record an 85 percent increase in net loss for the year ended December 31, 2017, attributed to depreciation, financial and impairment costs.

MacauThursday, Feb 15, 2018

MGM China has announced the resignation of Mr. Kenneth A. Rosevear as a non-executive director of the company, effective February 14.

MacauWednesday, Feb 14, 2018

Melco has announced the payment of a one-month discretionary bonus to all eligible non-management employees, as well as a salary increase of 2.5 percent to 8.1 percent.​

MacauWednesday, Feb 14, 2018

Macau junket operator Rich Goldman saw its 17H2 profit fall 38 percent to HK$24.7 million (US$31.6 million), impacted by a significant drop in revenue from its gaming business.

MacauTuesday, Feb 13, 2018

Studio City, operated by Melco Resorts & Entertainment, today announced that it has been granted an extension of the development period under the Studio City land concession contract.